China National Aviation Fuel Group acquires 10% stake in SAF producer Lianyungang Jiaao

Zhejiang Jiaao Enprotech (Jiaao Enprotech) announced that it has received strategic investment from China National Fuel Group (CNAF) in its subsidiary Lianyungang Jiaao Enprotech – producing sustainable aviation fuel (SAF).

According to Jiaao Enprotech, CNAF will invest approximately ¥261m ($36.4m) for a 10% equity stake post-capital increase. However, Jiaao Enprotech will remain the controlling shareholder, retaining actual control over Lianyungang Jiaao.

The company said that the existing shareholders: Jiaao Enprotech, Jiaao Fund, Jiaao New Energy, BP Global and controller Shen Jian will sign relevant capital increase agreements with CNAF, waiving pre-emptive rights.

CNAF, a central enterprise directly administered by Chinese state-owned Assets Supervision and Administration Commission of the State Council (SASAC), is Asia’s largest integrated aviation fuel service provider.

In May 2025, Lianyungang Jiaao secured approval from the country’s Ministry of Commerce and three other departments, becoming first company included in the SAF “Export Whitelist.”

This allowed Lianyungang facility to apply for export licenses for its full annual capacity of 372,400 tons of SAF. The company recently completed China’s first compliant export of 13,400 tons of SAF on May 6, 2025.

China is already developing multifaceted support policies for SAF. In May 2024, the State Council’s Energy Conservation and Carbon Reduction Action Plan explicitly called for “promoting advanced bio-liquid fuels and sustainable aviation fuels.”

In October 2024, the NDRC and other departments emphasized “developing green fuels like bio-aviation fuel based on local conditions” in the Renewable Energy Substitution Action Guidance.

China also launched SAF pilot programs at four major airports, with plans to expand scale by 2025, focusing on routine bio-jet fuel refuelling in the Yangtze River Delta and Beijing-Tianjin-Hebei regions.